IN THE HIGH COURT OF KARNATAKA AT BENGALURU
H.B.Prabhakara Sastry, J.
Sri S.Selvaraj S/o. Late Singaram - Appellant
Vs.
Sri K.Balchand S/o. Late Kivaraj - Respondent
Regular First Appeal No.1095 Of 2017
Decided On : 06-07-2023
specific performance - contract - [specific performance] - [Specific Relief Act, 1963, Section 20] - The court found that the plaintiff proved the execution of the agreement for sale, receipt of advance amount, and readiness to perform the contract. The defendant admitted to the agreement and advance payment. The court held that the plaintiff's claim for specific performance was not barred by limitation and that the defendant's intention not to perform his part of the contract was evident. The court exercised its discretion to decree the suit for specific performance. The defendant's contention on the plaintiff's financial capacity was rejected, and the court found that the plaintiff was not required to produce financial documents. The court also directed the plaintiff to pay an additional sum to the defendant as part of the sale consideration.
Fact of the Case:
The plaintiff filed a suit seeking specific performance of a contract for the sale of a property. The defendant denied the execution of the agreement and receipt of advance payment, contending that the suit was barred by limitation and that the plaintiff was not ready and willing to perform the contract.
Finding of the Court:
The court found that the plaintiff proved the execution of the agreement, receipt of advance amount, and readiness to perform the contract. The defendant's admissions and failure to respond to legal notices supported the plaintiff's claim. The court exercised its discretion to decree the suit for specific performance, rejecting the defendant's contentions.
Ratio Decidendi: The court held that the plaintiff's claim for specific performance was not barred by limitation and that the defendant's intention not to perform his part of the contract was evident. The court exercised its discretion to decree the suit for specific performance. The defendant's contention on the plaintiff's financial capacity was rejected, and the court found that the plaintiff was not required to produce financial documents. The court also directed the plaintiff to pay an additional sum to the defendant as part of the sale consideration.
Final Decision: The court allowed the appeal in part, modifying the judgment and decree to direct the plaintiff to pay a further sum to the defendant as part of the sale consideration. The defendant was directed to execute and register a sale deed in favor of the plaintiff within three months from the date of the order. The plaintiff was given the liberty to execute the decree if the defendant failed to comply. The rest of the terms of the judgment and decree remained unaltered, and there was no order as to costs.
JUDGMENT :
This is a defendants’ appeal. The present respondent as a plaintiff had instituted a suit against the present appellant, arraigning him as defendant in O.S.No.51/2014, in the Court of the learned Senior Civil Judge and Principal J.M.F.C. at K.G.F. (hereinafter for brevity referred to as “Trial Court”), seeking specific performance of a contract.
2. The summary of the case of the plaintiff in the Trial Court was that, the defendant has offered him to sell the suit schedule property to meet his legal and financial necessity and clear family debt. Accordingly, the negotiation took place between them on 05.09.2012. It was agreed in the negotiation that the defendant should sell the suit schedule property to the plaintiff for a total consideration of a sum of Rs. 14,00,000/-. In that regard, both the plaintiff and the defendant entered into an agreement for sale on 27.03.2013, on the same day, the plaintiff paid an advance consideration in the sale value of a sum of Rs. 10,00,000/- to the defendant, which the defendant acknowledged. It was agreed between the parties that the defendant should execute the sale deed and register it in favour of the plaintiff within three months from the date of the agreement for sale after receiving the balance sale consideration of a sum of Rs. 4,00,000/-. The defendant also agreed to handover the original documents as on the date of registration of sale deed.
It is the further case of the plaintiff that though he was ready and willing to perform his part of the contract, however, the defendant did not come forward to execute and register a sale deed in his favour. The plaintiff repeatedly requested and demanded the defendant to receive the balance sale consideration and execute the registered sale deed. Since the defendant did not respond favourably, the plaintiff got issued a legal notice dated 10.10.2013 calling upon him to perform his part of obligation under the agreement for sale. However, the said notice returned unserved with an endorsement as ‘the addressee left without intimation hence return to the sender’. The plaintiff once again sent a notice on 23.06.2014 to the address of the defendant at Bengaluru. The said notice also returned unserved with an endorsement as ‘intimation issued’. Since the defendant failed to receive the notice, the plaintiff got issued a reminder notice on 12.07.2014. The said notice was served upon the defendant. Still the defendant failed to comply the demand made in the notice. With this, the plaintiff contended that though he has always been ready and willing to perform his part of the obligation under the agreement, however, the defendant failed to perform his part of the contract and this constrained him to file a civil suit against the defendant. With this, the plaintiff has filed a suit in O.S.No.51/2014 against the defendant (the present appellant).
3. In response to the summons served upon him, the defendant appeared through his counsel and filed his written statement. In his written statement, the defendant admitted as true that he is the owner in possession and enjoyment of the suit schedule property and that he had purchased the same from his vendor, Sri P.M.Samuel under a registered document for a valuable consideration on 16.04.1977. He also admitted that thereafter, he put up construction of a dwelling house and shop premises, which is the suit schedule property. However, he denied all other averments made in the plaint as false and concocted. He denied that he had executed an agreement for sale in favour of the plaintiff and had received an advance amount of Rs. 10,00,000/-. He also denied that a legal notice was issued to him by the plaintiff. He contended that the suit is barred by limitation and there is no cause of action for the suit. He denied that the plaintiff was always ready and willing to perform his part of the contract including getting the sale deed executed within three months. However, the defendant contended that he intended
Basavaraj v. Padmavathi and another reported in AIR 2023 SC 282
Indira Kaur and Ors. v. Sheo Lal Kapoor reported in (1988) 2 SCC 488
The main legal point established in the judgment is that the plaintiff's claim for specific performance was not barred by limitation, and the court exercised its discretion to decree the suit for spe....
In specific performance cases, the plaintiff must continuously demonstrate financial capacity and willingness to perform contractual obligations for relief, requiring substantial evidence rather than....
The Plaintiff's readiness and willingness to perform the contract, as well as the Defendant's failure to prove that the sale agreement was fabricated, were crucial in the court's decision to confirm ....
The plaintiff was always ready and willing to perform her part of the contract, and the defendants failed to prove that the plaintiff lacked the financial capacity to pay the balance sale considerati....
The plaintiff's failure to prove readiness and willingness to perform his part of the contract within the stipulated time precluded him from obtaining the relief of specific performance.
(1) Specific performance of agreement of sale –Alternative plea of refund of earnest amount and damage could not be bar to claiming decree for specific Performance of contract.(2) Specific performanc....
(1) Specific performance – Ordinary rule is that specific performance should be granted – It ought to be denied only when equitable considerations point to its refusal and circumstances show that dam....
The continuous readiness and willingness of the plaintiff to perform her part of the contract is a condition precedent to grant the relief of specific performance.
The court affirmed that a plaintiff must prove readiness to perform a contract for specific performance, while a defendant's claims of hardship must be substantiated with evidence.
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